Special Military processing

[danstewart]

I have a return for a military member with nontaxable combat pay on his W-2. I get an efile error (ref #6665) requiring special military processing to e-file. The drop down list provided is not current or consistent with the combat zones listed on the IRS website.

https://www.irs.gov/individuals/military/combat-zones

I was advised by support to paper file the return. This is not an acceptable solution. The field needs to be updated or better guidance is needed how to prepare returns for service members.

[taxed2max]

Multiple attempts at doing the same thing.  Several hours on calls with tech support, and all the untrained front line operators have not got a clue what they are talking about.   With 30 years of Lacerte experience why must I have to deal with morons having zero training working remotely and unsupervised from their apartments?  Escalated twice.  Actually told me to just chose one from the drop down!  Told her to simply google those, they all ended over a decade ago!  Showed her the IRS and DFAS sites which list current theaters, and they are not listed in Lacerte.  And you cannot override the field, put in Other, or manually enter anything.  So after two days of fighting with untrained Lacerte people I am left with either choosing something wrong from the dropdown or filing while disengaging diagnostics.  Neither is acceptable.  And as can be seen by the date stamp on original post this is an issue that is months old already.  Lacerte just simply does not care.  

[sjrcpa]

Doesn't Box 1 of the W-2 only have the taxable wages? ie nontaxable combat pay has been excluded already?

What special processing are you looking for? An extended due date?

[taxed2max]

W2 input uses code q in box 12.  That is OK.  But then you need to input screen 4 under misc for efile processing, there is a dropdown for Special Military Processing and date entered combat zone.  This dropdown box still lists theaters that were closed over 15 years ago!  Not the current ones.

[sjrcpa]

What would happen if you skip the Box 12 entry?

[taxed2max]

It would leave no answer as to why taxable wages are so much less than social security wages.  Plus IRS transcripts pick up the Q codes.  It will not change the taxable income amounts but I'd rather file a cleaner return to match up the codes IRS is expecting to receive.

[danstewart]

I finally just entered Operation Enduring Freedom, even though the client wasn't specifically part of that operation. I attached a PDF note explaining that our software would not file the return without an entry even though this did not accurately describe his duties. Two weeks later client gets a notice asking him to complete form 15109 Request for Tax Deferment. They want to know when he entered combat zone and provide a copy of his military orders. The nontaxable pay is already on his freaking W-2. Why can't the IRS accept their own W-2? Needless to say this has not been resolved yet.

[taxed2max]

Like the idea of adding a pdf note to the transmittal.  Choosing any of the dropdowns will allow the file to pass diagnostic checks, but I was thinking of choosing Sinai Peninsula because though that is not the right place  that theater is still open and approved on IRS site.  The others ended in like 2011 and 2014 so they are significantly state dated.   

[MH1]

I am having the same issue.  The combat zone that I need was on previous tax year but not on 2023?  For the amount of money spent on this software compared to other software, we should have an accurate list of combat zones.  

[taxed2max]

see the update out today (4.4.24)  At least they added the generic "Combat Zone" to the drop down.  Not sure why we cannot get those specifically listed on the IRS site, but the generic should help.  ALL of the time in the past using the others, except the other new Peninsula one, has generated IRS response letters.  Lets hope this time it works.